The majority owners of Coal Asia Holdings Inc. has signed a share purchase agreement with Pure Energy Holdings Corp. to sell as much as 71.68 percent of the company.
In its disclosure, Coal Asia’s majority stockholders Dexter Y. Tiu, Eric Peter Y. Roxas, Gertim G. Chuahiong, Alexander Y. Tiu, and John L. Capinpin have agreed to sell their ownership to Pure Energy, Pure Water Corp. and Quadwater Corp.
The deal involved some 28.67 billion common shares of Coal Asia. The total transaction value is P220.91 million.
Under the agreement, Pure Energy acquired 4.99 billion common shares, representing 12.48 percent of the company’s issued and outstanding capital stock. Pure Water and Quad each acquired 11.84 billion shares, representing 29.6 percent.
‘The selling shareholders currently expect to finalize this transaction before year-end 2025, subject to the satisfaction of various pre-completion conditions, including, but not limited to, the fulfillment of any mandatory tender offer requirement by the buyers to the shareholders of COAL,’ the company said.
Pure Energy is a holding company, and its first tier subsidiary, Pure Water, together with Quad Water, has an equity participation in Tubig Pilipinas Group Inc.
Pure Water is a unit of Pure Energy, while Quad is not affiliated with either of the two companies.
Pure Energy and Pure Water and Coal Asia have interlocking directors, such as Tiu, Roxas and Chuahiong.
Coal Asia’s shares closed at P0.026 apiece on Monday.
Coal Asia was incorporated on June 11, 2012, primarily to be the holding company of Titan Mining and Energy Corp., a company engaged in the operations of coal mining and energy-related business.
Titan Mining owns coal operating contracts (COC) in Davao Oriental and Zamboanga Sibugay. In 2016, preliminary mine development activities commenced at the Davao Oriental project, although Titan Mining is still awaiting the conversion of the COC from exploration to development and production.
It submitted a five-year work program with a feasibility study for the Zamboanga Sibugay project to the Department of Energy (DOE) in August 2016.
Last January 22, the DOE terminated Titan Mining’s COC No. 166 for failing to submit complete requirements for conversion from exploration to development and production phase, requiring Titan Mining to vacate and restore the contract area.
The company received DOE approval to convert COC No. 159 to development and production phase, subject to obtaining either a certificate of precondition or certificate of non-overlap from the National Commission on Indigenous People.